Home sharing service Airbnb has welcomed a move in chancellor George Osborne’s budget to offer tax breaks to ‘micro-entrepreneurs’ who wish to sell services or rent out their homes online.

The measures come in the form of two new tax free allowances worth £1,000 per year for property and trading income which will be applied automatically without the need to apply via HMRC.

In a blog post welcoming the news Airbnb said: “This is good news for the growing number of Airbnb hosts in the UK who are sharing their homes, earning a little extra money to pay the bills and bringing new economic benefits to their communities.

“The UK has set itself as a global leader for the sharing economy and is introducing progressive new rules that empower regular people and promote innovation through technology. We applaud the government for supporting hosts and progressive business models across the country; their leadership on this important issue is an example to the world.”

From next month Airbnb hosts will benefit from an increased annual threshold for rent a room tax relief to £7,500, on top of the latest bonus when it takes effect.

The UK sharing economy is currently valued at around £500m but is expected to soar to around £9bn by 2025.